As the Affordable Care Act roils the health care market for employers, premiums continue to sky rocket 10, 20 and 30 percent, with no end in sight. The Act imposes penalties on many employers for not providing affordable insurance. At the same time, most employers in New Jersey are subject to take-it-or-leave-it policies from insurance carriers. As a result, many employers are confronting the dreadful prospect of discontinuing health care insurance for employees, thus risking the ill effects of an exposed and uncovered work force. This is why John Sarno, EANJ’s president, has called this situation a “crisis point” for New Jersey’s employers.

Effective immediately, eligible employers in New Jersey can provide exceptional health care coverage to their employees at a substantial savings by purchasing directly from a Multiple Employer Welfare Arrangement (MEWA). Through the MEWA, small and mid-sized employers will have the same choice of health care plans, plan design flexibility and the same cost savings as a big corporation with thousands of employees.

A MEWA is not an insurance company. It is a self-insured, nonprofit health benefits trust formed under federal law that permits employers to pool their health care risk, the same way a big corporation does. Since it is not an insurance company, the MEWA offers employers more flexibility in plan design and substantial cost savings.

The purpose of these meetings is to provide information about the Affordable Care Act, specifically the new reporting and administrative requirements imposed on employers. Additionally, John Sarno and others will discuss the MEWA and answer questions.

EANJ is a nonprofit trade association dedicated to improving employer-employee relations and facilitating the exchange of information among employers. It does not render legal services,
offer legal opinion or engage in the practice of law. Benefit plans are governed by plan documents. EANJ membership is not a guaranty of participation in any plan.